Survey: 30% of Companies Cut Pay in Response to COVID-19; Major Companies Already Reinstitute Pay After Cuts
Thirty percent of employers chose to cut pay in response to the COVID-19 pandemic. Of those, more than half (55%) reported the cuts allowed them to avoid layoffs, according to a new survey released Thursday by global outplacement and executive and business coaching firm Challenger, Gray & Christmas, Inc.
The survey was conducted online between June 11 and June 20 among 150 Human Resources executives at companies of various sizes and industries nationwide.
Recently, consulting giant Aon announced that it was not only reversing pay cuts imposed due to COVID-19, but would also repay employees what they lost as well as give workers an additional bonus.
Meanwhile, Dallas-based money transfer firm MoneyGram reversed the 20% pay cuts for its non-hourly employees and executives imposed in March, according to a regulatory filing. The company also expected revenue to be about 15% lower than last year.